Lithia Motors (NYSE:LAD) Trading Down 4.4% After Analyst Downgrade

Shares of Lithia Motors, Inc. (NYSE:LAD) were down 4.4% on Thursday after JPMorgan Chase & Co. lowered their price target on the stock from $420.00 to $360.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. Lithia Motors traded as low as $292.00 and last traded at $293.70. Approximately 42,312 shares traded hands during trading, a decline of 86% from the average daily volume of 295,493 shares. The stock had previously closed at $307.37.

Other equities research analysts also recently issued reports about the stock. Benchmark reissued a “buy” rating and issued a $400.00 price target on shares of Lithia Motors in a research note on Thursday, February 20th. Wells Fargo & Company boosted their price objective on Lithia Motors from $346.00 to $397.00 and gave the company an “equal weight” rating in a report on Thursday, February 13th. Evercore ISI raised their target price on Lithia Motors from $400.00 to $440.00 and gave the company an “outperform” rating in a report on Tuesday, February 18th. Finally, StockNews.com upgraded shares of Lithia Motors from a “sell” rating to a “hold” rating in a research note on Tuesday, January 14th. Five research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $365.91.

Insiders Place Their Bets

In related news, insider Gary M. Glandon sold 325 shares of the company’s stock in a transaction dated Thursday, February 13th. The stock was sold at an average price of $387.86, for a total value of $126,054.50. Following the completion of the sale, the insider now directly owns 1,665 shares of the company’s stock, valued at $645,786.90. This represents a 16.33 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, COO Adam Chamberlain sold 403 shares of Lithia Motors stock in a transaction that occurred on Friday, February 14th. The stock was sold at an average price of $384.28, for a total value of $154,864.84. Following the transaction, the chief operating officer now directly owns 2,605 shares in the company, valued at approximately $1,001,049.40. This trade represents a 13.40 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 1,246 shares of company stock valued at $433,724. 0.87% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Lithia Motors

Several large investors have recently modified their holdings of LAD. Atlas Capital Advisors Inc. acquired a new stake in Lithia Motors during the 4th quarter worth $34,000. SBI Securities Co. Ltd. purchased a new position in shares of Lithia Motors during the fourth quarter worth about $35,000. UMB Bank n.a. raised its stake in Lithia Motors by 69.9% during the 4th quarter. UMB Bank n.a. now owns 124 shares of the company’s stock valued at $44,000 after acquiring an additional 51 shares during the last quarter. V Square Quantitative Management LLC lifted its position in Lithia Motors by 33.9% during the 4th quarter. V Square Quantitative Management LLC now owns 146 shares of the company’s stock worth $52,000 after acquiring an additional 37 shares during the period. Finally, Rakuten Securities Inc. increased its holdings in shares of Lithia Motors by 1,420.0% in the fourth quarter. Rakuten Securities Inc. now owns 152 shares of the company’s stock valued at $54,000 after purchasing an additional 142 shares during the period.

Lithia Motors Price Performance

The company has a 50 day moving average price of $342.65 and a 200 day moving average price of $342.43. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.19 and a quick ratio of 0.28. The firm has a market cap of $7.78 billion, a PE ratio of 9.97, a PEG ratio of 4.65 and a beta of 1.69.

Lithia Motors (NYSE:LAD) last announced its quarterly earnings data on Wednesday, February 12th. The company reported $7.79 earnings per share for the quarter, topping analysts’ consensus estimates of $7.33 by $0.46. Lithia Motors had a return on equity of 12.43% and a net margin of 2.21%. Sell-side analysts expect that Lithia Motors, Inc. will post 34.45 EPS for the current fiscal year.

Lithia Motors Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, March 21st. Shareholders of record on Friday, March 7th were issued a $0.53 dividend. The ex-dividend date of this dividend was Friday, March 7th. This represents a $2.12 dividend on an annualized basis and a yield of 0.72%. Lithia Motors’s dividend payout ratio (DPR) is presently 7.14%.

Lithia Motors Company Profile

Lithia Motors, Inc operates as an automotive retailer worldwide. It operates in two segments, Vehicle Operations and Financing Operations. The company’s Vehicle Operations segment sells new and used vehicles; provides parts, repair, and maintenance services; vehicle finance; and insurance products. Its Financing Operations segment provides financing to customers buying and leasing retail vehicles.